By S. Eva Wolf
The Numbers Are In… er, Projected: Increases to the Estate, Gift, and Generation-Skipping Transfer Tax Exclusions.
While the official numbers will not be released until later this year, the following projections are unlikely to change since they are based on the average Consumer Price Index for the 12 month period ending August 31, 2015.
The estate and gift tax basic exclusion amount, which is adjusted annually for inflation, is projected to increase by $20,000 to $5,450,000 in 2016. The generation-skipping transfer tax exemption is also projected to be $5,450,000 in 2016. This increase is significantly less than in prior years. The basic exclusion amount increased by $90,000 in 2015, $90,000 in 2014, $130,000 in 2013, and $120,000 in 2012.
Although the gift tax annual exclusion is projected to remain at $14,000 in 2016, the annual exclusion for gifts to noncitizen spouses is projected to be $148,000 in 2016 (up from $147,000 in 2015).